Profit-taking may occur in Malaysia following recent gains

Malaysia Market Review: The FBM KLCI rose 1.0% on Monday, marking its third consecutive session of gains, supported by strong regional market performance and broad-based buying. All sectors saw gains, with Energy (+2.3%), Utilities (+2.0%), and Technology (+1.8%) leading. Bursa Malaysia was closed on Tuesday for the Nuzul Al-Quran holiday.

Global Markets Review: Fed and BOJ

Wall Street ended a two-day winning streak on Tuesday as the Federal Reserve began its monetary policy meeting amid rising economic uncertainty. European markets rose after Germany passed a significant fiscal package. Asian markets mostly gained, with the Hang Seng Index up 2.5%, though Indonesia’s stock market halted trading after a 7% plunge due to economic concerns.

Market Outlook

Volatility is expected due to ongoing tariff and trade tensions. Profit-taking may occur in Malaysia following recent gains, ahead of the Federal Reserve and Bank of Japan (BOJ) interest rate decisions, both anticipated to remain unchanged. Nvidia’s GPU Tech Conference could boost the Technology sector.

Sector Focus

Defensive sectors like REITs, Healthcare (excluding gloves), and Utilities are favored for stability. Gold-related stocks may rise as gold prices hit new highs, while profit-taking could hit the Energy sector as oil prices soften.

FBM KLCI Technical Outlook

The index rose above the 1,500 level, but technical indicators remain negative, with resistance at 1,570 and support at 1,500.

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